With important economic figures from the United States released on Thursday and more expected this Friday, markets are closely watching how the numbers might shape broader financial sentiment.
In crypto, where price swings are often tied to changing macro conditions, this time focuses on inflation and how spending, income, and policy outlook could affect institutional behaviour.
Bitcoin’s recent performance may be mixed, but investor interest hasn’t faded. The steady inflow into Bitcoin exchange-traded funds shows that many still view it as part of a longer-term strategy.
As global markets weigh the data, the reaction from these larger participants may hold more weight than any short-term price chart.
US Data Highlights Growth and Inflation Pressures
On Thursday, the United States published its GDP growth for the fourth quarter of 2024, which came in at 2.4%.
This slightly beat market expectations of 2.3%, though it remained below the previous quarter’s figure of 3.1%. The broader picture suggests the economy is still growing but with less momentum than before.
The GDP Price Index, which reflects inflation within the economy’s output, rose to 2.3 % from 1.9%. This indicates that while inflation is still present, it has not accelerated sharply. Meanwhile, the Core PCE figure for the quarter was revised from 2.2% to 2.6%.
This measure is closely tracked by the Federal Reserve and provides a clearer view of price changes outside of food and energy.
Labor market data also added to the picture of resilience. Initial Jobless Claims dropped slightly to 224,000, and Continuing Claims also saw a small decline to 1.856 million.
While not dramatic, these figures show that employment remains stable, adding pressure on the Fed to tread carefully in its future decisions on interest rates.
All of this sets the stage for Friday’s data releases, which include the Core PCE Price Index for February, alongside Personal Income and Personal Spending.
These numbers matter not just for economists but also for investors across asset classes, including crypto. A lower-than-expected inflation reading might encourage expectations for interest rate cuts later this year, while stronger inflation could delay such moves.
Personal income and spending data offer insight into how Americans are managing their money. If income is rising while spending remains soft, it might suggest growing caution among households.
That would affect confidence across sectors, particularly those considered higher risk, including digital assets.
Institutional Investors Are Still Responding Positively
Despite mixed signals in price and wider market sentiment, Bitcoin continues to see strong interest from institutional investors.
This past week, spot Bitcoin ETFs recorded net inflows of more than 5,000 BTC. The largest contributor was iShares by BlackRock, which added over 5,200 BTC during the period.
This pattern of steady accumulation reflects a broader view among large investors that Bitcoin still has a place in their portfolios.
These ETF products allow exposure to Bitcoin without the need to hold the asset directly, and their increasing popularity suggests a growing comfort with Bitcoin as part of mainstream investment strategies.
Rather than reacting sharply to every shift in the market, these institutions are likely considering the long-term value of holding Bitcoin.
Macro data influences these decisions, but not in the same way it does for short-term traders. When inflation looks controlled and income trends stay steady, the environment becomes more favourable for continued investment in digital assets.
The coming data on personal spending and inflation will likely affect how these investors act in the near term, but the inflow trend shows that sentiment has not turned negative.
If inflation data remains aligned with market expectations, it may even strengthen the case for continued buying. On the other hand, if inflation proves more persistent, we might see a brief pause, though not necessarily a reversal.
What matters is that Bitcoin ETF flows are not being driven purely by price action or headlines. They reflect considered decisions by institutions balancing risk, opportunity, and the broader economic outlook.
In this sense, they provide a more stable indicator of how the market views Bitcoin about wider macro conditions.
Conclusion
The latest round of US economic data adds another layer to the ongoing conversation about growth, inflation, and spending.
For crypto investors, especially those watching from the institutional side, this information helps shape how they approach allocation decisions in the months ahead.
Bitcoin’s price may move with the headlines, but the continued inflows into spot ETFs suggest that larger investors remain engaged.
As new data is released and markets adjust their expectations for interest rates and inflation, the role of Bitcoin in diversified portfolios is likely to remain a subject of interest.
Whether inflows stay strong will depend not just on how prices behave but on how the broader economic picture unfolds in the weeks to come.